Alligator indicator

Learn Forex : Bill Williams is a technical expert / Chartis ChaosTheory who developed the concept and special effects that occur in the market / market. William Bill found one successful Forex trading tips is to know how to price movements investment, forex, commodities, indices, stocks, etc. at random. Are you fully aware of the technical or Fundamental Analysis? It has less effect on your trading objectives of profit and consistent. Bill also said that many traders who lose more because they rely on the type of analysis that is not different this time hit the market a non-linear dynamic moves.

He continued, trading is a game of psychology, should any trader or investor must find a trading style of each. Thus there are two (2) aspects before starting trading: know yourself and understand the market structure correctly. Bill Williams says that the dimension of the market consists of:

Fractal (phase space)
Momentum (phase energy) - Awesome Oscillator
Acceleration / Deceleration (phase force)
Zone (phase energy / force combination)
Balance Line (strange attractors)

Trading Tips from Bill was there BEFORE the first dimension signal "fractal" appears, all the other dimensions of the signal (AO, AC, Zone, BL) not valid.

After the fractal signal has appeared, then an emerging signal from another dimension, do the addition of trade (add on trades) in the direction of fractal signals. For example, the fractal signal is established, then the trader should take or open a position based on the Fractal signals. Traders must take a position based on signals that are formed by the indicators of other dimensions.

Alligator preview

To display the Alligator indicator, you can click on the green plus sign, right no 3 above. Or you can select the Insert menu, Indicators, choose Alligator, or Insert, Indicators, Bill Williams, Alligator.

The default parameters of Alligator & Why.

The default parameters of the Alligator is 13/8/5. You can also use as a comparison parameter 8/5/3. We see that the parameters sharper than 13/8/5 8/5/3.

Here is the formula of the technical indicators: Alligator.

Alligator's Jaw (the blue line) is the period Simple Moving Average indicator 13 on the value of Midian (High + Low) / 2 which shows the price forecast by 8 rods in the future.

Alligator's Teeth (the red line) is the period Simple Moving Average indicator 8 on the value of Midian (High + Low) / 2 which shows the price forecast by 5 rods in the future.

Alligator's Lips (the green line) is the indicator period Simple Moving Average 5 on the value of Midian (High + Low) / 2 which shows the price forecast by 2 rods in the future.

The use of Alligator indicator to determine the trend is moving Up or Down. According to the explanation jaw, teeth and lips sequentially and heading up without anyone crossing the Trend Up, and vice versa. The point is the short-term trend (period 5) the direction of the medium-term trend (period 8) and is also in line with the long-term trend (period 13).

So again each trend line must be contiguous and do not intersect, thus forming like crocodile's mouth, either up (uptrend) or down (downtrend).

Comparison Alligator with Moving Average

In general, the same movement with the movement Alligator Moving Average. Here we show the moving average periods of 10 and 20.